June 21st, 2017 by Kim Chen
Can your company’s retirement plan participants take out loans from their accounts? If so, you must set a “reasonable” interest rate. Neither the IRS nor the DOL provides a set percentage for plan sponsors. The IRS looks to similar local interest rates and what local banks charge for similarly structured loans. Meanwhile, DOL regulations generally […]
June 6th, 2017 by Kim Chen
Many businesses are taking a new approach to paid time off (PTO). Under the “PTO bank” concept, employers merge the traditional components of excused absences (vacation time, sick time, etc.) into one employee-managed account. Many of today’s employees and job candidates view PTO banks as easier and empowering. More efficient administration can reduce the associated […]
June 3rd, 2017 by Kim Chen
No business should rely on luck to avoid a cyberattack. One area to consider is your employees. You might assume that only an outsider would, say, steal sensitive data or disable your website. But these crimes are often inadvertently caused or intentionally committed by employees. Train managers to review job applications with cybersecurity in mind. […]
May 27th, 2017 by Kim Chen
Chief Counsel Advice 201719025 In Chief Counsel Advice (CCA), IRS has determined that benefits paid under an employer-provided self-funded health plan for an employee’s participation in certain health-related activities didn’t qualify for exclusion under Code Sec. 104(a)(3) and were thus includible in the employee’s income. IRS reasoned that the plan neither involved insurance risk nor […]
May 21st, 2017 by Kim Chen
In an attempt to expand its private letter ruling policy, the IRS has removed certain debt issuance transactions from its list of “no rule” areas. On and after 5/9/17, the IRS will rule on whether the tax-favorable rules of IRC Secs. 355 and 361 apply to spin-off transactions in which debt issued in anticipation of […]
May 15th, 2017 by Kim Chen
IRS has acquiesced in result only with a Tax Court holding that an S corporation’s payment of personal expenses on behalf of its sole shareholder/officer should not be characterized as wages subject to federal employment taxes. The Tax Court found that they were repayments of loans made to the S corporation, and IRS was critical […]
February 12th, 2017 by Kim Chen
The IRS has issued guidance in the form of temporary regulations ( TD 9805 ) under IRC Secs. 355(e) and 355(f), which provide exceptions to the Section 355 rule that spin-offs of controlled corporations are tax-free. The regulations impose a tax on a company that spins off a unit if the distributing company or the […]
January 24th, 2017 by Kim Chen
The due date for filing 2016 Form W-2 and Form 1099-MISC that report nonemployee compensation in Box 7 is 1/31/17, rather than the due date of February 28 (March 31 if filing electronically) that applied in prior years. The PATH Act made this change to provide the IRS more time to verify eligibility for tax […]
January 3rd, 2017 by Kim Chen
Do you dread getting phone calls from unfamiliar sources? It seems that callers are more likely to be aggressive solicitors, pushy telemarketers or even devious con artists than legitimate business people. Criminals typically target the elderly, disabled people or immigrants, threatening them with fines, penalties or deportation if they don’t make payments to the callers. […]
December 24th, 2016 by Kim Chen
The IRS and its Security Summit partners have announced the launch of the second year of the “Taxes. Security. Together.” campaign. The campaign encourages taxpayers to adopt stronger measures to protect their financial and tax data. The program features a series of security awareness tax tips, a collection of suggestions on the campaign’s website, and […]
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